What’s The “Real” Cost Of Home Ownership?

We all know that buying a home is a big deal. It can be scary yet exciting… it can also take a big chunk of change. I see it all the time – with so much to think about just to purchase property, some forget to think about the actual cost of owning a home. Homeowners know, this is much different than the upfront costs you face during escrow. That begs the questions: how do you figure out what you can really afford?

To be honest, your best bet really is to come in, sit down and chat with me about your financial situation and what your real estate goals are. Nevada City is a vibrant community with several different areas to choose from and varying price ranges. Plus, you’re a unique person with specific needs and there are several factors to consider. But, if you’re interested in getting an “around there” figure, take a look at the questions below.

1. How much down payment can you afford?
2. How much are wanting (or qualified for) to spend on a home?
3. Subtract the down payment from the home price – what’s your loan amount?
4. How long are you wanting to spend paying off your mortgage?
5. What are property taxes like in the neighborhood where you’re considering purchasing?
6. How about private mortgage insurance?
7. Will you have HOA’s?

You can see how the amount you’ll actually be paying month-to-month for your home can really differ from the amount of your monthly mortgage payment. That’s not to say that you can’t afford it, or that owning a home isn’t the best option. But it is very important that you find the right home and loan for you so that you can afford the actual cost of owning your house.

Don’t forget to take into consideration the additional monthly costs you’ll have. You’ll still need to pay for electricity and other utilities, car payments if you have them, insurance, gas, food, clothing, etc.

Purchasing a home should be a financial investment, not a financial mess. I want the very best for my clients and that includes making sure that they’re financial able to handle the home that they’ve chosen. The best way to know that you’re making a smart decision is to have a professional on your side through the process. Contact me to chat.